LOAN INTRODUCER
SPOTLIGHT
Cost-of-living crisis: time to serve the underserved The issue is now affecting most people
T
he UK population is experiencing a once-in-a-generation cost-of-living crisis that is placing unprecedented pressure on household finances – and this on the back of recent figures showing that 3.2 million UK adults – the equivalent of six per cent of the UK population – have missed a major bill payment over the last two years due to the pandemic. With homeowners’ finances already in a delicate position, and predictions of worse to come, the impact of continued rises in food, fuel, and energy costs is likely to exacerbate this situation, with more missed payments, credit blips, and adverse credit ratings for homeowners increasingly likely. David Binney, commercial manager of Norton Home Loans, explained that the reality is the cost-of-living crisis is affecting most people one way or another now, and as a lender Norton Home Loans has already started to see the impact. “Due to where we sit in the market, we are used to dealing with applicants with credit issues, and we have the criteria to help many people when no other lenders can,” he added. Binney explained that specialist mortgage lenders like Norton Home Loans have been catering for the needs of people with adverse credit records and those who fail to meet the lending criteria of the mainstream mortgage market for decades. “In fact, the number of borrowers who fail to tick the one-size-fits-all lending definition of the high street has been increasing every year, with 80 per cent of brokers expecting to write more specialist lending cases in
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MORTGAGE INTRODUCER AUGUST 2022
David Binney
2022, and 43 per cent reporting an uplift in adverse credit case enquiries since the start of the pandemic, according to a recent poll,” Binney said. Binney believes these trends are almost certainly set to continue as the financial ramifications of COVID-19 and the rising cost of living continue to play out, with more people tightening the purse strings and many others either struggling to make ends meet or defaulting on mortgage or credit card repayments. For these people, and many like them, www.mortgageintroducer.com
